Fortinet Must Face 'Reality Of Constrained Demand' After Mixed Q3, Analyst Says
Portfolio Pulse from Priya Nigam
Fortinet Inc (NASDAQ:FTNT) shares dropped after the company reported mixed Q3 results. Analysts from Truist Securities, Guggenheim Securities, Needham, Oppenheimer, and KeyBanc provided their takeaways from the earnings release. The company's Q3 results were below expectations due to continued weakness in its product revenue segment. The company also lowered its full-year guidance, indicating a slowdown in its core secure networking market. Despite the weak Q3 results, some analysts still favor FTNT's balanced approach to growth and profitability.

November 03, 2023 | 3:14 pm
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Fortinet's Q3 results were below expectations due to weakness in its product revenue segment. The company also lowered its full-year guidance, indicating a slowdown in its core secure networking market. Despite these challenges, some analysts still favor FTNT's balanced approach to growth and profitability.
Fortinet's Q3 results were below expectations, primarily due to weakness in its product revenue segment. This, coupled with the company lowering its full-year guidance, indicates a slowdown in its core secure networking market. These factors are likely to negatively impact the company's stock price in the short term. However, some analysts still favor FTNT's balanced approach to growth and profitability, which could potentially mitigate some of the negative impact.
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